OVERVIEW OF CDM GUIDELINES ON UNEP CDM Guidebook/E7 Guide Dr. Bahaa Mansour TIMS Dr. Mohamed Elewa...

OVERVIEW OF CDM GUIDELINES

ONUNEP CDM Guidebook/E7

Guide

Dr. Bahaa Mansour

TIMS

Dr. Mohamed ElewaTIMS

Presented by:

CDM Guidelines Cairo, January 12-13, 2004

TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX

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Background• CDM in COP3, Kyoto 1997• Marrakech Accords upon CDM procedures and

modalities, 2007• The dual objectives of CDM:

– Reducing global GHG emissions and,– Contributing to sustainable development in the host country

• Challenges that face CDM, related to definitions, procedures,

• Challenges encountered in the CDM project through implementation and life cycle

• The role of CDM Guidelines


TIMS/EEAA CD4CDM- First National Workshop (Phase II) UNEP RISO / APEX

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Concept of Guidelines• The guidelines include definitions and rules for issues and

procedures of CDM. • Guidelines set out by the United Nations Framework Convention

on Climate Change (UNFCCC) and its related Protocols and Accords.

• Guidelines set by entities working in CDM • Differences between guidelines • Concerns of Guidelines set by UNEP/Risoe:

– Project cycle– Project Design Document, PDD– Sustainable Development Criteria

• Purpose of Guidelines set by e7 is depicting recommendations based on e7 project experience

• The present work is a brief to merging the UNDP/Risoe and e7 Guidelines



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Basic Issues:

• The Kyoto Mechanism for GHG abatement

• Sectors/Source Categories of CDM Emissions Reduction

• The Basic CDM project Conditions



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The Kyoto Mechanism for GHG abatement

• The Clean Development Mechanism, CDM, – By which Annex I Parties may create certified emission reduction

units through the implementation of projects to reduce GHG emissions in the territories of non-Annex I Parties;

• Joint Implementation, JI – By which Annex I Parties may receive allocated emission

reduction units through the implementation of projects to reduce GHG emissions or increase removals by sinks in the territories of other Annex I Parties, and

• Emissions Trading, where Annex I Parties may acquire assigned amount units from other Annex I Parties



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Sectors/Source Categories of CDM Emissions Reduction

• The CDM can include projects in the following sectors:– End-use energy efficiency improvement– Supply-side energy efficiency improvement– Renewable energy– Fuel switching– Agriculture– Industrial processes– Solvent and other product use– Waste management– Sinks (only afforestation and reforestation)



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The Basic CDM project Conditions

• The CDM project must realize the following two basic conditions:– Meet national sustainable development (SD) objectives.

– Achieve GHG emissions reductions that are additional to the Business As Usual (BAU) scenario.

Note: – The Sustainable Development concept definition and

objectives are a property of each developing country.

– The definition of the Business As Usual (BAU) scenario is based on each developing country stated plans. It also invokes the concepts of base-line definition and additionality as bases for project validation



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The CDM Project Cycle

The CDM project cycle is governed by three key entities:

– The Conference Of the Parties serving as the Meeting Of the Parties (COP/MOP)

– The CDM Executive Board (EB)– The Designated Operational Entities (DOEs)

Project design, Eligibility, and Documentation.

Third party verification throughout the cycle, [2].



9 CDM Guidelines Cairo, January 12-13, 2004


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Project Registration

• Two steps are required:

1. successful Documentation to prove:• Contribution to sustainable development• Additionality• Baseline definition

2. Registration of a CDM project by the EB



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Sustainable Development

• The World Commission on Environment and Development (1987) defined sustainable development as: “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

• Indicators of sustainable development: Environmental Social Economic





Examples of major sustainability indicators that can be used in relation to CDM projects



Illustrative example of qualitative assessment of the SD impacts of introducing a biogas plant to substitute woodfuel and kerosene consumption

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AdditionalityAdditionality means that the project must provide:

“reductions in emissions that are additional to any that would occur in the absence of the certified project activity.” (Art. 12.5, Kyoto protocol)

The Marrakesh Accords define additionality in:

“Reductions in greenhouse gas emissions”

Note:

A specific concern must be paid for the level of data that may0 affect the transaction costs.



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Baseline Methodology• The baseline methodology is key to the proof of

additionality• The baseline represents the reference scenario and must

be defined as follows:– In accordance with the provisions for the use of

approved or new methodologies,– In a transparent and conservative manner regarding

the choice of approaches, assumptions, methodologies, parameters, data sources, key factors and additionality, taking into account uncertainty;

– On a project-specific basis; and– Taking into account relevant national and/or sectoral

policies and circumstances. CDM Guidelines Cairo, January 12-13, 2004


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Illustrative examples of such tools include, but are not limited to:

• A flow-chart or series of questions that lead to a narrowing of potential baseline options; and/or

• A qualitative or quantitative assessment of different potential options and an indication of why the non-project option is more likely; and/or

• A qualitative or quantitative assessment of one or more barriers facing the proposed project activity, such as those laid out for small-scale

• CDM projects; and/or• An indication that the project type is not common

practice (i.e., occurs in less than [<x%] of similar cases) in the proposed area of implementation, and not required by recent/pending legislation/regulations.



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Five steps are identified for the definition of an emissions baseline:

1. Set project boundary,

2. Define project conditions,

3. Discuss project barriers,

4. Select the most appropriate baseline methodology,

5. Calculate baseline emissions.



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Project Design Document, (PDD)As defined by the Executive Board EB, Required Content of a Project Design Document (PDD) are:

A. General description of project activity

B. Baseline methodology

C. Duration of the project activity/crediting period

D. Monitoring methodology and plan

E. Calculation of GHG emission by sources

F. Environmental impacts

G. Stakeholder comments



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PDD (Cont.)Annex 1. Contact information on project participants

Annex 2. Information regarding public funding

Annex 3. New baseline methodology

Annex 4. New monitoring methodology

Annex 5. Table of baseline data

Note: Annex 3-5 are not necessary for the small-scale CDM and Annex 3-4 are expected

The Website “ http://cdm.unfccc.int/Reference/Documents “ encounters the PDD for normal CDM projects and small-scale CDM projects.to be removed from the PDD and included in two separate stand-alone forms.



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Third Party Verification

• Designated Operational Entity (DOE) has four key functions:– Validate and subsequently request registration

of a proposed CDM project activity,– Verify emission reductions of a registered

CDM project activity,– Certify as emission reductions, as appropriate,

and,– Request the Board to issue Certified

Emissions Reductions.



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The EB’s present the following small-scale CDM project activity Categories:

Type I: Renewable energy projects

A. Electricity generation by the user

B. Mechanical energy for the user

C. Thermal energy for the user

D. Renewable electricity generation for a grid



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Type II: Energy efficiency improvement projects

A. Supply side energy efficiency improvements - transmission and distribution

B. Supply side energy efficiency improvements - generation

C. Demand-side energy efficiency programs for specific technologies

D. Energy efficiency and fuel switching measures for industrial facilities

E. Energy efficiency and fuel switching measures for buildings



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Type III: Other project activitiesA. AgricultureB. Switching fossil fuelsC. Emission reductions by low-greenhouse gas

emission vehiclesD. Methane recovery and avoidance

Note: If a new project belongs to none of the existing categories

of small-scale projects, the project developer should propose a new category to the EB before submitting a project PDD. The proposal must include a description of how a simplified baseline and monitoring methodology would be applied to the new category.



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Conclusions

• The current bureaucratic complications in the verification, validation and crediting process have the potential to weigh down the CDM process and discourage its use.

• The first CDM projects are important steps towards developing a realistic assessment of the CDM’s potential.



OVERVIEW OF CDM GUIDELINES ON UNEP CDM Guidebook/E7 Guide Dr. Bahaa Mansour TIMS Dr. Mohamed Elewa...

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